What is LOP Reversal?

LOP Reversal is the process of reversing (or reimbursing) LOP (that is, “Loss of Pay”) that an employee suffered because of some unforeseen reason. For example, an employee came into work on a certain day, but the employee tracking system did not track the employee due to some technical issue. In that case, the employee may suffer LOP for being absent on the said day. But the employee came to work, thereby making LOP an unfair deduction. Employers understanding this will then reverse the LOP and pay the amount to the employee.

What are the reasons for LOP?

There are many reasons why an employee can suffer LOP:

• Out of leaves: If an employee is out of the allotted number of leaves in a month, they can take a leave by suffering LOP.
• Unapproved leaves: Sometimes employees take leave without prior notice. Employers can deduct the day’s salary from the employee’s monthly salary if leave is unapproved.
• Illness: In case of medical emergencies, like sickness and accident, employees can take leave even if they have no leave in their leave balance. LOP occurs in this scenario as well.

However, sometimes LOP happens due to the negligence of the employer and then they must reverse the LOP.

What are the causes of LOP reversal?

• Glitches in technical system: There are times when the attendance tracking system faces technical issues and fails to track employees. Any LOP caused by technical glitches in the system should be reversed.
• Mismatched approval cycle: Discrepancies between a manager and the HR regarding leave approvals can also cause LOP. In that case, both parties should sort it out and reverse the LOP to the employee’s account.
• Manual payroll: Manual payroll can cause delays in payments and errors in payroll calculations. Any LOP occurred due to manual errors should also be reversed.
• Irregular data of attendance system: If an employee has come in on a certain day, and still the attendance system marks the employee absent, this can be taken up to the HR. Employers will reverse the LOP due to irregular data in the attendance system.

LOP Reversal – FAQs

What is the meaning of LOP reversal days?

There are times when an employee comes in and they are still marked absent. In that case, employers reverse the LOP for days when the salary was deducted.

What is basic reversal in salary?

Sometimes employees suffer LOP due to technical issues, irregular approval cycle and other issues. Employers can do a basic reversal in salary after the issue is resolved and recompense the employee.

What is LOP in pay slip?

LOP in pay slip is the amount deducted from an employee’s salary due to their absence from work.

How to calculate LOP?

The easiest way to calculate LOP is to determine the salary of the day of an employee and multiply it with the number of unapproved leaves taken. For example, an employee’s salary is 50,000/ month and she takes 2 days off without approval or she is out of leaves. Then her LOP = Per day salary X Number of leaves. In this case, 1923 X 2 = 3846.